Enbridge Inc. (TSX:ENB)(NYSE:ENB) is a stock that has been on my list of top picks for quite some time, for a number of very good reasons.
Despite operating in the oil and gas sector, Enbridge’s core business as an energy infrastructure company provides investors with a significant degree of insulation from commodity price volatility. This is a huge plus for investors concerned about commodities in general.
Additionally, the ability of Enbridge to not only contract with the highest quality blue-chip energy producers, but also hold extremely beneficial take-or-pay contracts with said producers, significantly lowers the counterparty risk which has been deeply priced into Enbridge’s stock.
These key catalysts are supplemented by recent positive news that former Bank of Canada Governor Stephen Poloz has been appointed to the company’s board of directors. This appointment is a significant announcement because of the political clout brought in by Poloz. He is a true government insider with far-reaching influence and direct access to the inner workings of how Canadian federal monetary policy and stimulus measures may impact the energy sector broadly.
I view this piece of news as one of the most important developments for Enbridge in quite some time.
For those investors who have not yet initiated a position in Enbridge, I would encourage adding the stock to your watch list. As economic forecasts continue to shift, I expect we’ll see additional volatility on the horizon for this company, though Enbridge’s management team does seem intent on minimizing said volatility via any means necessary, a bullish indicator for long-term investors.
Invest wisely, my friends.
